My Investment Trust picks for 2005 and beyond....

cloud_dog

Still with individual stocks, even what look like good stocks can turnout to be bad, so a better risk adjustment would be to invest in an investment trust that has a portfolio of strong growing stocks.

For the uninitiated out there Investment Trusts are considered a bit more risky than Unit Trusts / OEIC's as their share price can have a discount or premium to the value of its investments; whereas a UT / OEIC price reflects the valuation of its investments. For example if an Investment Trust has a very good track record, or the invetment manager is well liked / has provided good returns, etc demand in the trusts shares causes the price to rise with no underlying value rise - simplistic, I know but.... supply and demand.

Me, I like living on the wild side and like investment trusts; also because of the different share structures they can issue (but I'm not going there).

cloud_dog

deemy2004

I'd say Unit Trusts are riskier than Investment Trusts.

The bid offer spread is enormous ! were talking 5% or more ! And I just can't do with the 12pm pricing model. Also if theres a problem with the market, whats the odds the won't even pick up the phone.

Investment trusts are more transparent than Unit Trusts

cloud_dog

I'd say Unit Trusts are riskier than Investment Trusts.

Have to disagree just because the share price can rise / fall due to sentiment other than that associated with the investments.

The bid offer spread is enormous ! were talking 5% or more ! And I just can't do with the 12pm pricing model. Also if theres a problem with the market, whats the odds the won't even pick up the phone.

The spread is whatever the spread is.  There is no spread with an OEIC but of course that value is made up in management charges, etc.  I agree, I find IT much more liquid.

Investment trusts are more transparent than Trusts

Sort of agree, I did say I'm a big fan of IT's.  Re your point above they have the option of borrowing money rather than cashing in investments if there is longer term gain, etc, whereas if people sell their investments in a UT the comapny must sell investments to provide the liquidity (simplistic again, I know).

cloud_dog